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How To Make Your Property Investment A Success?

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How To Make Your Property Investment A Success?

Real estate in India is a dynamic market, thus you never know what turn it will take. Consequently, determining any place’s investment potential can be a challenge and a daunting task. Here is how you can analyze your local market.

  1. Watch pricing trends

Start with tracking the way the prices keep fluctuating. This will give you a good insight in any city’s real estate scenario. Gain accurate knowledge about the existing pricing trends and compare it with past price trends. Go back to at least 3 years to understand the growth and arrive at a dependable decision.

Even if it is just about residential property investment, study trends across a larger cross-section of real estate segments including residential, commercial, industrial and even farm land property within your market. As a result, you will know the highs and lows of the particular area and help you realize its growth potential.

  1. What are its growth factors?

After finalizing an area to invest in and studying its price trends the next natural step is to understand that factors that have influenced changes in the market. Macro and micro-economic factors both influence the market to determine property’s value. Simultaneously, the social infrastructure development like the building of roads, bridges, schools, parks, hospitals and other services also influences the market.

Lastly, regional regulatory guidelines, tax reforms, and interest rates are other factors affecting the area’s economy and thus determine the ups and downs in the market.

  1. Determine the buying activity

Find out the rate at which the apartments get sold and bought. This can help you determine if it is a buyer’s or seller’s market. This may sound tricky to accomplish and you can never know how many properties are sold in a day. However, it is easy to find how long does a particular property stay on the market before being sold.

‘Days on Market’ (DoM) is a trend that can be studied over a period of two or three months, based on online property listings. This method is reliable and can be used for more than one location at a single time for understanding the present supply and demand.

  1. Compare locations

Do not keep your focus only on central locations, extend your search to adjoining suburbs and even the outskirts around this area. It is often noted that growth in the central location stagnates because they eventually reach the peak capacity for new developments. This means faster growth of the adjoining locations, which are open to real estate and infrastructure development.

Thus even though market dynamics keep fluctuating all the times, the rules that govern returns on investment do not.

Also Read: The Indian Real Estate Will Soon See An Influx Of Foreign And Local Investment

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